Elmer Received the Following Distributions from Virginiana Mutual Fund for the Calendar

Elmer received the following distributions from Virginiana Mutual Fund for the calendar year 2014: Elsie, Elmer's wife, did not own any of the Virginiana Mutual Fund shares, but she did receive $175 in interest on a savings account at the Moss National Bank and $1,475 in interest on California Municipal Bonds. Elmer and Elsie filed a joint income tax return for 2014. What amount is reportable as taxable interest income?

A) $0
B) $175
C) $1,475
D) $1,650
E) None of the above